Inbound
Sector calls on government ‘to back a winner’ FIGURE 78:
Charging £16 for an ETA may cut against tourism minister Sir Chris Bryant’s 25% growth target
INBOUND VISITOR numbers to the UK in 2024 were expected to reach 95% of the 2019 level and spending surpass that of the last pre-pandemic year by 14%. However, spending adjusted for inflation was likely to reach only 92% of the 2019 level. Industry association UKinbound
wrote to incoming prime minister Sir Keir Starmer in June highlighting a series of policy measures it argued “could be rolled out relatively quickly” to boost the sector and contribute to economic growth. These included a reformed and expanded youth mobility scheme, an extension of passport-free travel schemes for those under 18, a new VAT reclaim scheme, a “more competitive” Electronic Travel Authorisation (ETA) system, and a restoration of tourist board budgets to levels before inflation took off in 2021-22. UKinbound chief executive Joss Croft told Travel Weekly: “Inbound travel will
The Deloitte view
Inbound travel to the UK remained strong in 2024, with a continued upwards trend year on year, according to the Office for National Statistics (ONS). There were 40 million arrivals of non-British nationals to the UK in the year to June, an increase from 37 million for the equivalent period a year before. VisitBritain reported inbound visits in the
second quarter of 2024 up 4% versus 2019 and 9% versus 2023, with increases on 2023 in both the number of holiday and business visits, albeit business visits remained below 2019 levels. Inbound travel from Europe increased by 13% in 2024 on 2023. The US remained the number-one source market
for leisure travellers, although inbound travel from North America remained flat. The UK expanded its Electronic
Travel Authorisation (ETA) scheme from January 8 to apply to 54 nationalities, all outside Europe, including major inbound markets such as the US, Australia and Hong Kong. The scheme previously applied solely to travellers from six Gulf states. It was due to extend to travellers from Europe from April. While the scheme is not intended to
be onerous, the requirement to verify travellers’ ETAs adds a further data validation and retention requirement for the travel industry. We anticipate
confusion regarding ETA requirements will lead to a short-term increase in booking issues for tour operators, such as refund requests and cancellations where travellers were not aware of the requirements. Businesses will need to focus resources
on monitoring the requirements and ensuring employees comply. We continue to see a strong focus by
employers on the management of business travel, including travel restrictions informed by both cost management measures and sustainability policies. It’s likely this level of caution will continue and may impact
the inbound business travel market. Q Ed Knight, director, Tax
INBOUND VISITS TO UK BY PURPOSE
% of overnight trips 2019
purpose given Other/no 7%
30.5% VFR
40.9m
inbound trips
21% Business purpose given* Other/no 7%
34% VFR
38m
inbound trips
Business 17%
*Trips for sports, events, study etc Source: ONS
42% Holiday
2023
41.5% Holiday
grow 7% in value this year and is forecast to grow 20% by 2027, so we’re calling on the government to back a winner. He noted most of the association’s asks of government “don’t cost any money” when the sector remains subject to “air passenger duty, high VAT, the loss of tax-free shopping and a lack of visibility of our tourism authorities”. Croft insisted: “The UK should be more ambitious about the role inbound tourism can play in economic growth.” Tourism minister Sir Chris Bryant
signalled his embrace of that ambition when, in October, he told Travel Weekly: “I would like to see us rival France for inbound tourists.” He set a target of a 25% increase in overseas visitors to the UK to 50 million by 2030, saying: “I know that is a big ask [but] by the next election I want to see us charging up the list of countries for inbound tourism.” He insisted: “My first question to
everybody in tourism is, what is the barrier to growth that the government can deal with?” Bryant announced a new Visitor
Economy Advisory Council made up of tourism and hospitality leaders to replace the former Tourism Industry Council and told a Tourism Policy Conference in November: “Too many of
54 Travel Weekly Insight Report 2025
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